Dogecoin Price Analysis Plots Fresh Reversal as DOGE Hits Oversold Territory

Dogecoin Price Analysis

Summary

The cryptocurrency market experienced a significant downturn this week, with Bitcoin falling below $60,000. The Mt. Gox sell-off continues to pressure BTC prices, impacting altcoins like Dogecoin. Dogecoin has lost support and is experiencing a correction.

Price Action

Dogecoin experienced a three-day decline, dropping from $0.125 to $0.091, a 27% loss. Long positions faced $16.23 million in liquidations. However, the price reversed at $0.0916, reaching $0.099 and recovering a market cap of $14.4 billion.

Technical Analysis

A long-tail candle has formed at the lower trendline of a bull-flag formation, indicating a potential counter-trend move for buyers.

Market Sentiment

Crypto analytics firm Santiment reports unprecedented levels of Fear, Uncertainty, and Doubt (FUD) on social media, with a record-high ratio of "sell" to "buy" mentions.

Trading Opportunity

This negative sentiment presents a potential contrarian buying opportunity for bold traders, according to Santiment.